Limbach(US:LMB)2026-03-02 23:42Financial Performance - Total revenue for FY2025 increased 30.1% to a record $186.9 million compared to $143.7 million in FY2024[8] - Record net income of $12.3 million, or $1.02 per diluted share, compared to $9.8 million, or $0.82 per diluted share in the previous year[8] - Adjusted EBITDA for FY2025 reached a record $81.8 million, up 28.4% from $63.7 million in FY2024[8] - Revenue for the year ended December 31, 2025, was $646,804,000, representing a 24.7% increase from $518,781,000 in 2024[22] - Net income for 2025 reached $39,064,000, a 26.5% increase compared to $30,875,000 in 2024[22] - Basic earnings per share (EPS) for 2025 was $3.37, compared to $2.75 in 2024, reflecting a 22.5% increase[22] - Operating income for 2025 was $49,454,000, up from $38,624,000 in 2024, showing improved operational efficiency[22] - Total revenue for the three months ended December 31, 2025, was $186,872,000, representing a 30.1% increase from $143,650,000 in the same period of 2024[30] - Net income for the three months ended December 31, 2025, was $12,300,000, compared to $9,842,000 in 2024, resulting in diluted earnings per share of $1.02[40] Revenue Breakdown - Owner Direct Relationships (ODR) revenue rose 51.8% to $145.0 million, accounting for 77.6% of total revenue; ODR organic revenue growth was 23.9%[8] - ODR revenue for the year ended December 31, 2025, was $485,690,000, a 40.6% increase from $345,500,000 in 2024, while GCR revenue decreased by 7.0% to $161,114,000[33] - Organic revenue growth for ODR was $22,849,000, representing a 23.9% increase, while GCR experienced a decline of $12,592,000, or 26.1%[42] - Acquisition-related revenue for the three months ended December 31, 2025, was $32,965,000, accounting for 22.9% of total revenue[42] - For the twelve months ended December 31, 2025, total revenue rose by 24.7% to $646,804,000 from $518,781,000 in 2024[43] - Acquisition-related revenue for the twelve months ended December 31, 2025, was $109,093,000, representing 21.0% of total revenue[43] - The company attributed acquisition-related revenue to Pioneer Power, Consolidated Mechanical, and Kent Island acquisitions[43] Expenses and Financial Health - SG&A expenses increased to $109.5 million, primarily due to acquisitions, but as a percentage of revenue decreased to 16.9%[11] - Interest expense increased to $3.1 million, driven by higher borrowings related to the Pioneer Power acquisition[11] - Cash and cash equivalents decreased to $11,345,000 in 2025 from $44,930,000 in 2024, indicating a cash flow challenge[24] - Total liabilities decreased to $185,469,000 in 2025 from $198,638,000 in 2024, indicating improved financial health[24] - The company made significant investments in acquisitions, including the Pioneer Power Transaction, which totaled $65,651,000[26] Strategic Initiatives - The company completed the strategic acquisition of Pioneer Power, enhancing its competitive positioning in key verticals[7] - For FY2026, the company expects total revenue between $730 million and $760 million, with ODR revenue projected to be 75-80% of total revenue[14] - The company aims to improve margins through evolved customer solutions and disciplined capital allocation while scaling the business through acquisitions[10] - The company reported a backlog that includes unexercised contract options, indicating potential future revenue[38] - The company emphasizes the importance of non-GAAP measures such as Adjusted Net Income and Adjusted Diluted Earnings per Share for evaluating performance and making strategic decisions[36] Amortization and Retention - Acquisition-related retention expense decreased significantly by 89.3% to $153,000 for the three months ended December 31, 2025[30] - Amortization of intangibles increased by 34.9% to $2,337,000 for the three months ended December 31, 2025[30]